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tv   Board of Education 11216  SFGTV  January 13, 2016 12:00pm-2:31pm PST

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>> good afternoon i'd like to
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call roll at this time. of the san francisco public utilities commission to order can we please have the roll call commissioner courtney commissioner vice president moran commissioner courtney commissioner kwon and commissioner caen will arrive shortly. >> approval of the draft minutes is there a motion to approve the minutes of the 6 additions, deletions, or changes public comment? >> all in favor, say i. >> i. >> opposed? that motion carries next item, please. >> >> item 4 general public comment francisco da costa please. >> commissioners, i want to wish you all a happy new year
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so. >> happy new year to you. >> thank you so we are now amending the taxpayers they're going to be seeing a lot changes in 2016 whether we like it are not and what i'm requesting is not too many people have the time to come here time is precious so we all have our own projects and if you see less and less public comment here given it is less and less experts from the community i can mention a few like steve lawrence and john and another passed away and dr. espanola jackson who is not
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doing well very sick it is because somewhere along the line we don't have the proper kind of dialogue and so if you don't have the proper type of dialogue and the so-called experts think they know is it all what is going to happen is there's going to be a big divide and chases going to happen lack of transparency and other we already see it we rarely don't know what is happening in mountain tunnel we really don't know at eir ton town and lake merced we really do not know what is happening with the $2.6 billion
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investers proper dialogue and through are changes happening so quickly at 18 hundred oakdale it is unbelievable the nurses will be moved away and pate money and moved away the contracting center will go to another place that is fine they have a long lease what about dialogue with the community? so we're not going to come here and waste our time we can watch it on tv it enboldz us to write about the assets that is what's going to happen >> thank you, paul please.
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>> good afternoon i'm paula former puc employee operations manager for the system and projection for wsip until i retired a few years ago i'm here to make a request regarding part of the infrastructure and it is related to the bay town that was recently completed we conceived the bay tunnel to replace the pipelines are a seismically related pipe and put in something that can be maintained they're related to in the don edwards wildlife refuge are not maintained because of the lack of access roads because of the salt company removed the
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access road so the tunnel is now in serve we've capped and abandoned the two lines 5 miles of surface pipelines and lady paint by steering wheels we've abandoned them, no the don edwards wildlife refuge we've talked with don edwards i've taken part in the meetings we removed the pipes and the cover sheet that i've handed you explaining the way to remove the pipe there is the lowest price is the most valuable but the project component early on to save money i understand why cost savings are one of the most
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important goals but a bait-and-switch it is important for us to step forward and remove those pipes from the wildlife refuge the money is baselineed from the project the remain money is probable not enough nearly enough to remove the pipes i'm requesting the commission and instruct staff to start the process of removing the pipes i'll be happy to answer any questions you may have. >> >> may i ask a question i might have missed it a halt to the project you mention a bait-and-switch. >> we've told a number of sfrrldz after we built the tunnel we'll remove the pipelines we decided not to remove the pipelines and
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bait-and-switch a dirty word it's not the intent of the staff but to save money to build the project as efficiently has possible i was one of the wanted o of the people that did that ever change but in this case our obligation to rove the pipes. >> i'd like to get more information how toxic and toxicity and the cost price range might be and the feasibility of the removal of pipes is that possible. >> what we'll do additional meet we have the technical memo he's distributed and in contact with don and in contact with kathy and steve we'll come back to the commission to give you an update and price of options and also, if there are savings that are realized the feasibility of
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it as well and if it does not look great to have those pipes going to it we want to be good environmental stuart's. >> thank you very much. >> thank you. >> any other public comment? hearing none next item, please. >> >> next item please is item 5 communications i'd like to note on item 5 b the commission has received an update to the letter summary that includes a letter from sunday on the sierra club san francisco bay chapter and california sports fishing protection alliance strongly requests restore hetch hetchy and the holy water regarding the participation and also update in
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the public findings. >> convicting on communications? public comment? hearing none next item, please. >> >> item 6 other commission business. >> commissioners. >> yes. >> thank you i'd like to request that at a future meeting we calendar for consideration possible action a more close linkage between go solar and the cca. >> that would be great do we have a sense of when that could happen. >> let me check and see i think you wanted to have a conversation here or talk amongst the staff to come up with some proposals what you're looking for.
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>> my end desire so have something that is part of our role out especially to residential customers and if we can get to a point of having a proposal in the next meeting or two pent that would be great. >> i know we talked about 2, 3, 4 in a merging or two ago i was thinking and hopefully, we'll put our heads together to come up with something. >> seems to me as part of budget deliberation during the energy we want to have something. >> that's part of that. >> the president of the united states that's coming up pretty quick i'll suggest to the calendar the conversation sooner than later we'll be looking at something it would be nice to know how go solar fits into
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programs we'll work on that and recommendations for that. >> thank you. >> thank you. >> any other commission business? >> yes. >> so to earlier comments if francisco i have concerns about dr. jackson i know i think for those of us who feel related to dr. jackson for me personally you know one of the most important roles in government is the role of the people that come to those meetings and participate and keep everyone honest dr. jackson schooler and those to make sure we have every opportunity to reach out we have to consider something nice to do as the commission not just out of respect for dr. jackson but
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the elderly so i want to say that. >> thank you very much for those comments any other commission business? public comment? next item, please. >> >> item 7 the revenue bond oversight committee annual report. >> mr. sandler cfo i want to introduce kevin chang the co-chair we've had an opportunity to serve together and want to thank him for his dedicated service. >> hello mr. chang. >> hello commissioners my name is kevin chang the co-sponsored the oversight committee on behalf of the members i'm proud to present the 2015-2016 annual report the committee was established in 2003 pursuant to proposition pi want to give you
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quick highlights of what is in the annual report this year past year arock worked for the management were pipes away system improvement program on time and budget we look forward to apply those same best practices to the sewer system improvement program and to keep the public involved in the work as the puc as well as arock by quoting the activists activities for the oversight bodies and our role in the program and lastly our organization suntsz every three to four years and worked with the board of supervisors in order to get our committee extend to 2019 we've greatly
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precedent the support of general manager q c and bosca enclosing our situation as well as what we received from staff we look forward to continue work with the puc and also serving publics interest thank you for the opportunity to present our annual report. >> thank you. >> questions or comments? hearing none next item, please. >> >> general public comment on item 7. >> public comment on item 7. >> i took the opportunity to come to it this meeting in the morning to attend a couple of meetings where in general they discussed about the revenue bond and so forth one of the state man's met i heard it clearly that best
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practices linked to the water system improvement project this is a heavy duty statement best practices linked to the water system improvement project when we know brand new bubbles have burst open and millions of gallons of water have spilled on construction and our last summary we were blind those who were members the commission we did have contractors would come here and tells you about very poor we couldn't have done it without you on the pipes and so forth we need real transparency much like we're facing at mountain tunnel we need real transparency
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the other thing is we can talk all we want to about the sewer system improvement project not an easy project when you promise the public that they will be participating in certain of the booshgz with the task force was created and those have not yielded been met and the commissioners think that all is okay. it is not okay we are monitoring you how are we monitoring you we're collecting input data we know of people that can do risk management on any project we know of people that do qualify control they're not dump
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this is a $6 billion project where are the best practices? now we have this committee that plays the general manager and i've played him, too that is not part of valuation we want standards and booshgz we want valuations and transparency on the 13wek9 we're living in a digital world thank you very much >> thank you it's a good transition to 9 next item. >> item e the technology progress report.
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>> commissioner president vietor and commissioners cfo for the puc i have the next installment in your yearlong effort to look at the recommendations we have with respect to them so today, we're talking about the technology policy it was so adopted in september of 2012 and it really establishes four areas by principles and criteria by which to consider that adopt and implement the technology there are 4 basic areas the first relates to economic consideration essentially this is making sure there is a solid business case for the deployment of technology and very little impact for example, you're looking mobile field technology
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that allows field forces to operate for efficiently and drive less and reduce the green house gas emissions that is a very well impact and the social and workforce development how it aligns with the policy or staff development opportunities and finally leadership and transparency and that really is oriented towards conducting pilots and making sure there is democr democratab demonstrable technology - the puc is responsible for the technology and the various projects and chaired by the deputy project sponsor and comprised by the puc there are a numbering number of subcommittees i've listed a few
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here and then we cooperate and collaborate with agencies and boards within the city and with other utilities in a range of ways directly through industry organizations when we look at the policy we thought overall assessment it seems like to be relevant for over investment and certain principles and criteria are more measurable and actionable than on the economic criteria and consideration and the leadership takes into account were more tangible in terms of evaluating technology but the others environmental and social workforce impact are equally as important one of the things we've found that a lot of the work tend to
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be focused an information item and while it is tough to separate the technology from other intelligence we focus has been much more information on the technology we also came up with two areas we think warrants consideration we are already doing but we think this is important to address the information security and business information we want to propose a modification of a leadership set of criteria to focus on really traditional information that drives improvement in the surface level of efficiency from the commission is set we would like to return this to the business technology council to look at implementing those types of changes and work with them
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i'll be happy to answer any questions you may have. >> commissioner vice president moran. >> thank you and ethics thank you for that report this is i think responsive to the commission request to review those policies periodically and what is the policy and how are we are doing against that one thing you've pointed out in your report i notice in reading it is where the initial intent of the policy was to focus on utility oriented technologies what seems to have been implemented most effectively is the information technology area and i guess i'd like to spend some time over the next months
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working with whoever the appropriate people whether it is you or the general manager members of the various enterprises to look at scaling that effort up to deal with the emergency technologies that effect the way we do our business and this last year, we committed to the ohio draft process which is new and pooirlg and leading edge i hope we're tracking and other technologies in terms of how you get salt out of water that need to be tracked as well i'd like to work with staff to see what it would took and look like to expand that effort into the other areas mike d i were talking earlier this
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is work exploring opportunities for collaboration with the cal agency i don't know what that looks like but so it might be worthwhile and a situation with the cal county report on the officers and adds value to us and demonstrate there is some areas out there i think this is a good start i'd like to work with staff on expanding it into the other technology areas and one request that i have of maybe kind of a set of the bed for this thinking is that the policy called said we should explore mr. small technologies and we do that at 525
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in the reports we'll get the sources of the improvement programs i would like to have developed a set of criteria for what a pilot projects looks like it is different usually, we're buying something the pilot projects we're trying to get right so the thought process has to be different and the criteria you have to have criteria some sense of what success looks like a measurement program some kind of reporting process we did the pilot project and here it is we can share it with the people i helpful to have thought if it
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goes towards a practice this utility when we decide what are we reilly having to have a fully operational technical office or technology over that we might ask them to do in the absence and thinking how to get that done maybe some thought how we want to develop that function as well. >> other comments? public comment on this item? >> commissioners you you know that i represent the first people the reason why i'm bringing this turk and asking you all to take a serious year 2016 we get our
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water one and 60 miles away from san francisco we have to have the ability to manage containments it is our water shed but it is dangerous whether it is congestion water is much more precious than gold so we have to ask ourselves and ca ask tour mayor why is it we want so many people coming to san francisco who gives them that permission this is the land of the people they stole the land every square inch so if we give this people who build market-rate units that let us
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charge them more let's charge them more for the clean water and charge more for the sewage and why in 2016 we don't have real time technology i've spoken about this before i know one of the commission is interested in things that are smart but people can't use smart telephones this is stupid and in the army we say kiss keep it simple stupid and encouraging smart people to do the right thing we can't encourage stupid people to do the right thing if they don't have a vision if they can't think outside the box so here in san francisco we don't tap into our water shed this much do you know it is
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contained contemplated over three hundred thousand tons of meth gas spews into the area 22.2 pounds-21.2 tons of carotid yet we talk about the cartoonish footprint we use concrete and aggregate all the as i understand to the hopefully of college know we contribute to the carbon footprint sfpuc should take a lead in that you have a gentleman a commission that is in the california scientific that can help you thank you very much thank you. >> mr. brooks good afternoon. >> good afternoon, commissioners eric brooks clean
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advocates and also you can explore the technical aspects of what commissioner vice president moran raised on community choice cleanpowersf right now a situation whereas, you, you may recall what happens last year around various piece of legislation roosevelt panels don't count in the go solar and to enable a customer to count roosevelt solar an official way to you get credit and make it part of system it is important that they have an adequate level technology meter because pg&e didn't provide those and pg&e pretty much designed the quote/unquote smart meters to put in energy back both the grid
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as a matter of fact you have to buy a meter from pg&e 200 plus dollars we a need to analyze things like that in the technology this is applying to big programs like go solar and analyze the demand response intelligence that the sfpuc may be able to introduce into homes we give them light bulbs but to meter the technology in the day and hopefully, this is part of technology conversation because that actually delivers the bank for the buck like programs like go solar. >> any other public comment?
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hearing next item. >> >> good happy new years to the commissioners and first like to take a moment to let everyone know i harnt to visit dr. espanola jackson and when i actually went there she was in good spirits we talked about the college or 18 hundred oakdale she perked up i told her we need her involvement we're going though the planning process so i was who else was with me, sam murray she give us a lecture maybe too much for you today so we'll go next week to keep up her spirits i want to say we
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miss you coming to the commission so the first item i'd like 0 steve richie to give an update on the drought excuse me. steve richie assistant manager for water north side providing a drought update good news pro tem news the normal chart of water storage levels hetch hetchy is 72 percent of capacity and the water bank is about 32 percent of capacitate is coming up the total systems storage is 47 percent that is only 60 percent of normal we're well blow necessarily but everything is on the rise and that's because the precipitation is good
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so as you can see this chart we've stayed above the medium level for the water years as far so. >> steve you said storage is what percentage. >> 46.8 that is 60 percent of normal. >> thank you. >> uh-huh again, the community precipitation is above the medium level as as opposed to the other levels it good news and the snowpack is the medium level more storms expected later this week it continues to look good we have a ways to go but everything is on the right track right now i've shown this the water
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available to the city as far this year is 42 that's the amount of water after the districts obligations are met last year, we only had 50 thousand acres for the entire year we've up and the year before that with was 22 percent so it is on track and the typography shows roughly what it takes for us to fill the water bank for the entire system based on the modeling analysis we have a 25 chance of phil the entire system this year that didn't end the drought but surely makes next year look easier that is not out the ream of possibilities so we'll see how the year progresses this is the monthly precipitation up country it is
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good every month as far and again, we have stored we expect additional precipitation the same is true the first two years lagged but this month is starting oh, well as well it is a good precipitation this year no guarantee on the rest this is the next two weeks bright colors are better and bright colors abound in the sierra in terms of forecast if we get a good storm tomorrow and saturday we might be out of the woods and the companion of the supplies we basically ended the year exactly where we were last year and the time is to the lowest level the week after this
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we'll have a lower level people are not back to doing anything it is the low part of year we'd like to see it start to rebound that is a revenue question but again think open on the conservatism people are doing a fabulous job talk about the day to day activities and the regulations expire in feedback in november the governor directed the state board to extend the regulations to october from the drought persists they'll take a caution approach you'll have to be in my opinion a very, very strong january for the state to not continue the drought regulations it is statewide and to the fall to identify the improvements to the regulations and bans that
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input and the regulatory framework for the extended regulations in december that we take into account and they've proposed credits for certain people a lot of concern from people in the inland california that the compliment they should get a little bit of credit some decree and to adjust for growth that might be come their way and might get credit for drought resilience of supplies that is for the project that started up and by san diego we're paying for this this is truly using the ground water supply we shouldn't have to sxheefr as everyone else the framework was credits might be given when raised other
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agencies conservatism requirement from the overall gloel didn't change and give the hire people credits that is the conclusion that those 0 who saved more might have to save more to make up for 25 percent we've pointed out that to the state board we shouldn't be required to sxheefr more because others conserve less for the sources also on the growth investment front this type of investment is the new service connections one to one to households and plus a new serve connection to a high-rise multiple building we're getting a lot of growth with the connection we've not had a way
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to demonstrate that on a routine basis we've highlighted to the state board but those are not good measures for us in bosca and puc provided comments to the state board to make sure we don't get penalize by a combination for others we actually noted we've worked closely with bosca and provided other comments so the emergency regulations should be available in the next few days and the board will consider something in early february another thing that is one of those technical things that a lot of people don't pay attention that is critical is draft regulations for water diversion and reporting sb 88 directed the state broad to adopt the regulations for murray and monitoring the metering so the draft regulations require
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the reporting for 10 acre feet or more per year it is a small number and more frequent reporting and diverting the water hourly it is not very meaningful time step daily we do for the - even that is subject to in the years more frequent reporting is more data point but not more information i'd like to make sure the data for the data for the storage by january 2020 and the hope that realtime data is responsible to the state water for example, we'll have their decision that is better that is not necessarily a straight line connection by any means and the
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resources we're looking at the draft regulations colonel and they're considered for adoption on january 17th by the board and last but not least state legislation senator hill has a bill in print that mandate the water supply-side for excess eye that may not mean much to us with a short supply and senator hurt beggar mandated a bill that wastewater by three 6 that the wastewater will not go to the sea there is lots of challenges and the total eliminates is a high bar to geto we can go that direction when we get there and another hot topic again accessibility water daylight lots of talk about the data
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available would be better and direct reuse regulations should be coming up from the state board and the water consolidation it shouldn't effect us but on the legislative front a lot of people are talking about doing drought related stuff so a lot of activity and we'll prepare the staff and the lobbyists will be watching closely i'll be happy to answer any questions you may have. >> comments and questions thank you mr. richie. >> on the general manager report. >> the next is the long term financial stability eric. >> thank you, commissioners
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eric sandler business manager for services and the cfo this presentation is the presentation that i gave at last meeting related to the rates policy we had quite a bit of conversation about the activities coming up in the next 2 and a half years so this presentation i mean is addressing what i want to do is talk about and provide a framework being financial rates and charges and really frame it in terms of long term financial responsibility i want to talk about the work plan for the financial planning and talk about one of the items we're working on with respect to stormwater run offs so this year the mayor issued convicted the department to update their
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strategy planning the general manager is identifying a world map for the agency and the staff is working to update the strategic plan one of the items a long term financial stability this agency how we framed it and with the puc by planning for long term funding and managing the rates and affordability supporting that goal are 4 go subordinate taufblz i'm talking about the 20/20 today, the first is long-range financial planning and the next is planning i want to share what sort of work we have planned for the next 2 and a half years with respect to long-range financial planning a foundation that that is by the city charter we regularly update
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our 10 year capital improvement plan and financial plan what i think we want to do in the next couple of years to really look at the functional water sales for example, and re-evaluate and develop things that drive the long-range charges one of the most things that is interesting we don't have a financial capital strategy how much debt financial debt so you or should you do we've take advantage of the mortgage rates in the last 10 years and invested heavily in the system and as some of our activity turns toward r and r in construction we may want to consider a higher level of cash funding we're or worthy of discussion at the commission
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level and it is helpful to revisit our debt coverage and perhaps frame it in for detail regarding the policy now on to the rate and charge activity in addition to update our regular 4 year cost of service in anticipation of the rate passage in the fiscal year we're in the process of engaging a consultant to conduct our cost of service and rate study some of the issues that will be highlighted in addition to the rate setting some of the issues meeting what are the strategies to mitigate not find ourselves in the middle again in the middle of a 4-year rate package
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we want to look at robust affordability model we do some standards in the industry about looking affordability but not talking about the practices i want to engage in framing the affordability issue and finally one of the tactic the primary tactic topic if the development of a stormwater run off charge as you may know we have a combined sewer system it treats sanitary flow the stormwater costs represent 20 percent of the wastewater enterprise costs from operations cost of treating stormwater to up sizings the
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clorox system in order to treat. >> what's that number do you know how much what is 20 percent. >> 20 percent of wastewater budget is. >> i'll get it. >> thanks. >> currently, we recover those costs through a surcharge that is based on water use the more water you use the larger our conservatism towards the costs not the greatest relationship two the cost recovery in 2014 the cost of service studies identified implementing the stormwater run off charge and i will highlight this is not restore not talking about new revenue by a way to recover the
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revenue part of it. >> so one way of illustrating this is how we currently recover costs and how this w a stormwater run off from left to right we'll walk through how we charge with the existing sewer service and stormwater we make the meter water use and estimate the sewage to the sanitation so we take that and multiple by a sewer rate to the strength of the discharge if you're food processer is higher strength than domestic is it your rate is a hire you multiple the
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estimated discharge by the rate and get twastewater bill on the right this slide and 100 percent is volume metric and that's on the right so what would it look like with a stormwater cherish i'll collect 80 percent the revenue from the way we currently do it is just the remaining 20 percent is recovered from the strrmentd charge bans the rate the driver so for example, rather than use the water use you'll look at the property characteristics to estimate the stormwater run off and multiple it by the rate and get the charge that's a fixed amount every month so that's how it w the just stormwater run off
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one of the exciting things you can design an incentive to make people make improvements and change the property so there is less stormwater run off and retention by and large or removing the surface area in order to reduce the bill incentivizes stormwater reductions that's one of the exciting things about this approach so why would we develop a charge we'll summarize it better aligns the cost of revenue and incentivizes better stormwater management and in order to work to communicate a better system not just treat sanitary waste that will think adherent with the charges and finally it provide a revenue source
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so i wanted to share a little bit about the work to date our team has done this comprehensive outreach to the leading utilities implementing temple across the country and california we had a lot of interesting lessons learned in those discussions so of those learningings were careful outreach the simple lift thing and really look at how you're going to structure the charge and make it simple and recommendation is in the perfect surface not more complicated than that we've done a gi s analysis to estimate the surface area and contribution to the stormwater and cleaned up the
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mapping addresses a what's gi s. >> graphic information system sorry. >> sorry about that some of the work with the consultant is looking at the alternatives and looking at how we can structure incentive and grant programs we need to have a clear implementation plannd a realistic budget implement a nontrivial change how we charge and how we communicate with customers and how we operate customer service so just to give a sense of next steps we issue an rfp and at the end of this month actually, well in advance where we do it because
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of all the work involved in developing a stormwater run off charge we'll be conducting stakeholder outreach and hope to get the consulate on board in the spring and returning refinery to the commission commissions with further information about charges be happy to answer any questions you may have. >> commissioner vice president moran. >> thank you. >> a couple of questions on the consultants you're bringing in as far as exploring issues before the contract or asking the contractors. >> we're asking the contractors. >> so from the commission collectively or individuals on the commission said to the be part of that discussion when is the appropriate time to do that. >> let me think about exactly
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how we will structure that from the process. >> okay i think there are some financial policy issues and public policy issues that certainly how you how or whether you choose to finance a lifeline; right? for example, is something the commission would like to know. >> okay. >> i'll work with the general manager to flush out exactly the rates we'll pursue and the points we can best engage the commission participation rather than delivering you something. >> i'm curious in hearing i don't know in is this is the consultants purview you talk about the surface as low hanging fruit and what you know is the additional options and maybe there is something we're not
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really seeing or maybe there is additional benefits that could be gained by some other component or tool. >> absolutely something in the scope. >> okay. great additional to continue to hear about what rises to the surface and again, it might not an opportunity for our technology you know really be maximizing we're using it with the rfp but what that looks like as part of stormwater charge program moving forward. >> one of the things we could do after we bring the consultant on they can talk about with other city and are actually doing so get an understanding and an appetite is for us to consider what we're pulling out in the program maybe that's a good time they'll didn't you have what other cities and the challenges were because we're not the only cities doing it
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we're actually, we saw a lot of cities implementing you know stormwater fees they do it gradually so you know there are different concepts so you know once we bring the consultant on we can do a workshop of what and a half learned from other cities and maybe have a dialogue at a time. >> i think this is time we go through this a mechanical effort of the studies we're at a point of i think fluctuation people are thinking differently about water treatment and the development of thought moving rapidly we need to make sure we use this is as an opportunity to react appropriately.
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>> thank you for the input. >> any other comments or questions. >> next speaker, please. >> so the next item is presentation of upcoming bye annual budget meeting i want to say this is my second budget since i was appoint in 2012 and today, we're going to give a presentation on a high-level of what we are proposing and some of the challenges and how we're prioritizing it's ban a tough budget because of our revenue as you may know we have reduced our water sales that a lot of the 3 businesses are tied to the demand of water use so our customers have done a very good job of conserving waitress we
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saw the financial challenges that we've been facing and so you know we're going to have hearings later this month to go into much more detail so the hope that we anticipate final approval at the commission on the 9 and hopefully, we'll have those workshops and so you know the main principles we have core principle is that we want to make sure we continue to deliver high quality reliable service when one thing we want to make sure the second we want to maintain our critical infrastructure and then also, we want to make sure that we have ratepayer accountability we're looking at a lot of external and internal challenges it is packing one is the drought i
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mentioned earlier what i did i we knew that come in we had to tighten our belt so the first thing that directed staff is cut 5 percent of 2016 budget and so and that will help put us in the position of 2017 and 2018 and then we really look ated how we can address the next two years so we have over the next two years we have about a 1 percent account to 5 percent in the last two year budget so we have a slight increase from next year you'll see the trend so some the responses that we're able to incorporate that is a slight increase is the mutation of cca
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how the positions we have a new source of revenue isle you'll see that the other is the new development is the not slowing down so we're behind the eight ball of meeting the schedules of developers we're requesting the resources to do that and the other thing we're continuing to involve in critical infrastructure so 18 mile pipe replacement we committing to doing that and more resources to do those in the capital budget so it's been a hard budget because we not only look at the operating capital to achieve i feel a modest increase in the next two year budget we looked at amongst the existing resources how to redeploy them there is probably very more or
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less positions we're adding outside cca to address that we looked at subsiding some positions to repurpose them and the other thing it is challenge we have an aging workforce and so 47 percent in wastewater is eligible to retire we're looking at a session of planning and ways that we can you know utility that for training and opportunities to maybe do things differently so with that, i wanted to ask eric to come up and give a short presentation. >> may i have the slides please. commissioners eric sandler assistant general manager of the cfo this presentation is about the bio budget specifically with
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the general manager kelly said in the presentation so 0 i'm going to start with an introduction there is a budget and looked did calendar and talk about the external pressures when we developed this budget and give you a sense of the overall budget changes are in advance of the actual hearings so as i mentioned the mayor requested the department heads to update other strategic plan we've take advantage of this with the goal area and spent time a a few weeks ago talking about the financial sustainability and the budget related policies within this area as we've talked about the 4 we
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have a regular series of budgeting activities that are highlight by the charter and the 10 year capital improvement plan and the water plan and the bilingual budget and rates and harasses that are set on various periods here is the budget development calendar we looked this in september just to reremind where we've been before i talk about where we are going september 8, 2015, was when we started to talk to the commission about input of budget priorities and sent a lot of time of the impact of the drought and the drought the drought continues and worsens and looked at the financial combats impacts and set forth short-term and long-term efforts
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we'll undertake to manage through this from that meeting you provided us direction it was essentially if this is an opportunity to tile our belts but not give up the gains over the pt 10 years to invested in the infrastructure be mindful of the measures we take. i think we've balanced and struck a good balance in the requested budget over the last several months staff has been developing budget proposals based on the general manager direction going into a detailed budget later this month and february we're looking for action in early february and then the budget will be included in the large city budget process here we go or here's the specific schedule the budget related activity the meeting today on the 12 and 3 special
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meetings that are calendar two of them is a place holder inform follow-up the first one an january 22nd we'll be talking about the water enterprise and hetch hetchy water and power those mergers are starting at 10 and ending other two having lunch in between and talking about the water in the beginning in the morning and with water and power in the afternoon and on the 29 we'll talk about wastewater february 5th a a followup meeting if necessary and february 9th at the regular hearing will be putting before you the 10 year capital improvement plan and financial plan and budget for consideration of documentation and send out materials in advance of this merging. >> can we have our meeting on the 26.
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>> we will but not budget related calendar so general manager kelly talked about this is our ongoing balancing act he need to preserve the rate for affordability but we don't create a budget under a vacuum we need to deal with the external factors that have effected us one is the dough the impact of the stent drought we've talked about that on the eighth and what's happening and the general manager powder the impact of the development and then the increasing operating costs those are you know we've got general inflation and general wages and benefits i wanted to point out towards the end of the voep the budget we
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got unexpected information with wages and benefits in the second year actually an expected decrease in the employee contribution rate but ended up increasing so this is one of the business that and health care were one of the pressures you see ups pressures and the driver is the settlement of retirees that a settlement several folks retirees investment act were these and those are the drivers of those changes. >> can i ask a question sorry on the new development piece we'll get into it but is there going to be a proposal for additional staff report in order to deal with the new business
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seems like i can imagine with the new requests and just a request that the limitations of the request there will be some. >> what's really driving it is we're actually getting hook up fees we're able to do that but for any other resources that we have to look at we don't have money the challenge we had to do everything because we don't want to raise rates we have a limited amount of resources we're trying to do what we can and in this situation it is for new development based on the fees for hookups. >> that should cover the costs. >> you'll see in the budget presentation that will be clearly outlined in the presentation new position are being requested.
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>> as it relates to that. >> yes. >> as it relates to the updating of longevity tables. >> so that's why we're giving cookies and doughnuts. >> (laughter). yes, we are so i wanted to spend a few minutes characterizing the external pressure i want to remind you the drought effects our enterprises the water enterprise is in terms of demand and the power side that is really a supply issue how much power to generate and what do we have to sell and buy from the market we highlighted that the power enterprise is recovery quite rapid and this is in fact, what is happening
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so as steve mentioned and above afternoon precipitation and the el nino our reservoirs are filing but we're in a deep deficit and how conditions will regressing and the states with drought restrictions regardless of precipitation and we expect the demand to be for the next week several years in fact, our financial planning we're bays it on the low demand so oh, i'm sorry just to remind you what this drought continued scenario this is how i'll orient around the grass of projected retail demand on the action sister low is the
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retail sales and the blue line represents the historical information and that's for the past 12 years it is demand is downward the green line is the assumption we made for retail water demand when we developed the rate and charge package we're in the red line is demand estimated essentially current demand as you can see that's 11 percent reduction so when you crank that through the revenue side of the valuation i'll see a significant revenue rescues versus where we thought we'd be in the charges >> is your assumption going to do into the next two years is what. >> the drought tans path that is in the retail service area not project by project a drought
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worsens scenario it is continuing at this level of demand. >> within the other things we'll talked about increasing the new development you'll hear that in the assistant general manager presentation but i thought that map would be helpful except the city didn't need to be showing up laughter this map shows the project areas and when you - of course, it didn't represent what is going on in the city when you compare today with 2012 weeping we've seen a 12 percent demand in product services this demand focuses our organizations supporting the development agreement with the city and
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conducting plan reviews ming new installations a whole workflow it gets adopted by this you'll hear in more a detail from all the gm so in addition to the external pressures what is going going on in the organization no organization is statusic but we're going through a lot of transition and implementing the ssi p and increasing the pass of r and r and we have a generational change in the workforce we'll go through those fairly quickly and completing a recess you're familiar with that information the $4.8 billion to our ripening system we're talking about completing the biggest project in wsip but more and more implementing those aspects into the daily operation
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for example, 22 now ground water systems and consider the impacts of integrating of the general operations and also the viral obligations similarly we have implementing the dot that time you're here about that later and some of the challenges both a larger calendar program and increasing the pace of r and r in all the water and sewer and a water main in the middle a street light and there are a couple of dynamics here the replacement rate of water and sewer from 6 to 15 miles a year we're not the only
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people in the streets we have to keep pace with dpw and mta and an additional level for those as well you'll hear about that. >> and you've seen this chart before we have a lot going on in the enterprise we have the expansion of our existing pub owned utilities that customer base and there are resources allocated to that and cleanpowersf you'll hear more about today potentially represents a very large business line and what we have here i think general manager kelly talked about the generational change in the workforce here's a graft that represents october of this year the percentage of employees
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in each depth eligible to retire within 5 years it is significant means not only managing but the work of our our work is changing reflected in the budget as general manager kelly mentioned and we repurpose our vacancies and align them with the needs so, now we've talked about the external pressures and the comboirlg dynamics of the organization in september we talked about short medium and long term strategies for addressing many of over financial challenges and in the short term we've taken the miles an hour to manage the expenditures have $22.6 million in reduction and another $38 million in debt services and
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the medium term is the development of bio budget we've embarked on and the long term is the stuff in terms of the long term sustainability and the financial plan stuff as well as the efforts. >> so when you boil is down what's the priorities you'll say reflected as proposed by the annual budget well, we're launching clean power it is a huge undertaking we're implementing the power business plan, we're completing wsip i've talked about that a little bit and implementing ssi p and increasing the because of r and r those are the themes you'll see throughout our budget hearing when you put it altogether this is what woe we get excluding other clean power we're talking
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about the budget contains non-capital spends to an afternoon of 1 percent a year the operating budget is growing between fiscal year 2016 and 2018 by one percent a year and we add clean power to that we're breaking down the billion dollars budget barrier skrou just to frame with general manager kelly was talking about those colors don't show up as well, the 10 year plan financial plan was based on an assumption of growth in the operating budget of 3 percent a year it's a total of 6 percent between 2016 and 2018 the target we've sent out to contain that increase one percent in the second year it essentially 5 percent reduction that's the
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target and i mentioned we identified reductions and identified proposals and made priorities and late in the process we have in addition with respect to the benefits and this is where we came out with the operating budget that increases more 15 percent the second year and addresses the priorities we've talked about and we've been talking about this as well so, now let's turn to the capital improvement plan and capital budget we went through a process we thoroughly reviewed the presumptions not money to be deployed so each of that enterprise went through and prioritized all the scope the highlight is that the water
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enterprise 10 year capital improvement plan is one $.4 billion and completing calaveres dam is a local contains and distribution is a new priority and reaching the pipeline and relating essentially the same work on the transition piecemeal as the distribution pipes the watering enterprise 10 year is $4.5 billion we updated the schedule added funds for resilience and increased the collection of r and r the hetch hetchy water and power vip is one billion dollars we did a lot of the reallocation and focused on critical power r and r and, of course, we fund fully fund mountain tunnel in the plan and we also added funds to the local distribution for the customers that is the
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implementing the power mp so you may be wondering so eric you know in september things were looking dire and where are we now we're still looking at reduced revenue picture we expect water sales to be at the level they're at now that he this is a significant revenue reduction but offset by combining the expenses in the operating budget debt service budget so yet we believe where we're talking about perhaps having a rate increase in the great package this is unlikely unless we're in the worse drought condition this is a
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picture and as well rates and charges after fiscal year 19 on are in line where w where we said we'll be last year when you saw the 10 year financial plan and navigate customer bills because the reduced water bills is lower than the afternoon customer we thought it would be one or two years ago i have information when i think about the credit outcome and how having that conversation with the rate issues what are the major issues i'll be talking about all the entrepreneurss are stable and the waterside we'll be talking about managing the water drought it's the most effective and wastewater i think really the story how we are implementing the mp it is an extraordinary
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large water plan and on the power side eel really is how we're implementing any impacts to the power enterprise so just to review the rate impacts 2018 you are familiar with that slide slide 26 we have the combined rate increase water to water and sewer we showed you in 2014-2015 and 2015-2016 then we have the nominal rate increases and the change versus the 5 years and what you, see that versus where we talked about a year ago we were about a one percent higher for the first 3 years 1920 and 21 and a percent lover
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if it 2 perhaps for meaningful is the bill impact on the next page where you can see that in fact, you know when you goon the rate increase with reduces customer use we're project by project bills in $201,914 lower than what we showed two years ago or $8 lower than two years ago i think this is a good story you've seen this is this the detail of the budget hearing we're going to be convene on the 22 and the 29 maybe for final action on the 29 of february i'll be happy to answer any questions you may have. >> thank you and i'm sorry that commissioner caen i not
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here with us because i'm hoping to ask her if she's willing to serve as the chair of the budget she's historically but we haven't had a chance to discuss that is not official but i'll catch up with her this friday and if no objections from the commissioners any other questions on what was presented. >> i have one thank you for the report the city is on a deficit the costs of city are up 21 percent where the puc in the cost frame. >> when you look at the city departments and the mayor's instructs tare to reduce general fund support by 1.5 percent and
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then that enterprise departments worked to absorb the impacts of really the increased employer contributions so similar instructions and this is reflected in the budget. >> uh-huh. >> thank you. >> commissioner vice president moran. >> how long in terms of your water demand projections staying low. >> we have that for the next through the 10 year projection period could be considered xheefrl. >> the reason i'm pleased with that answer if earn to make the power objective we maintain the current levels and that's consistent with our budget proenlz. >> yes. >> and if it turns out that
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our choument was not as great and people use more that we generate some revenue that we can divert into conservatism. >> yes. >> that's a i think an opportunity for us to perhaps take policy positions we would like to take anyway, the numbers may support that at this time. >> yes. thank you for that. >> any other questions or comments next item, please. >> >> last item a sewer system improvement program for the update. >> good afternoon, commissioners karen the director of wastewater capital program this is my regular quarterly report it corresponds to the last report today, we'll go over
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the challenges and updates and an update on those the stakeholder engagement currently our projects are in planning and design but moving forward quibble into construction this is the projects we're based on the endorsement of the service our early implementation project currently sunset in design and construction and it is being implemented by dpw and that's 10 blocks that is going forward both mission and valencia and hallway will begin construction in about three weeks and have more starting in the fall so currently 68 projects moving forward 57 are in planning and design and 4 that chart shows 6 in construction that is
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construction and close out two actively in construction and expenditures no low side that will pick up each commission meeting you'll be seeing requests for award for construction some of the achievement we will have applied for 4 state resolving funds and received one so we're looking for the other 3 to move forward shortly as you may know we're preapproved for $14.4 million we've got a guidebook this is a resource for contractors and substances for engineers and inspectors and we talked to our scleegz about the designation and got best practices and incorporated those into this book we'll be doing a video when we do the haul away projects
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lastly we have awarded two additional contracts those were awarded haul away and the valencia other updates on the projects have begun 35 percent design and the environmental the grit project we're the head works for north and south will be moving that contract out the door at the end of this month and beginning of next month 3 qualified contractors and we've got g b r we've initiated the 12-month progress for the tunnel and corresponding with the green projects we've built with that and the late item i want to highlight this is one that harlan asked me about systemically looking at the
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design storm the 5 year storm as well as larger storms and seeing how the system performs where we have challenges and that leads into a future slide i have updates on constructions as i said two jobs active and this is our schedule for what is coming forward and several green structure and a lot of work at the treatment work and the fires and facilities and work on the north point out fall we'll be here on the s i p awards now this slide i want to read because we are very lucky we have the person connie heading the workforce for s example i p he helps us to context identity
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28 plus million dollar on the circumstance s example i p one and $12 million to substances and others to lbe in addition the sf businesses prime contractor on 5 contracts that represents over $30 million so we are very, very excited about that and through june san francisco residents have worked more than 40 percent of hours on the ssi p that's exceeded the requirements across the board so thank you, sue and your group if on this everything was so easy we do have challenges shown in the charts before me we have glutton 4 months worth of detailed work looking at the individual projects and suspending the scope and coming forward march 8
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to discuss the baseline and discussing at this point the projects because the sister s example i p has the stormwater it is the right place for those to be and specifically the last one tommy will be talking about the aging workforce the guys are starting to use the retirement word and planning their exit and some of the guys stranger when i first start that is starting we're concerned about there they're a great institutional memory and the liaison that works sibdz with us we don't think them exciting things on the stakeholder side several meetings with neighbors that live in low lying areas they're aware the low water grant
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program we had a webinar that businesses met the project manager and the project sponsors like to be in the office but we want their faces to be familiar to the neighbors and the telephone course to review the projects when we get state resolving monies and there's a picture there it is really didn't show up great but commissioner president vietor helping us this is the wonderland and trees ceremony at malcolm heinicke dale plaza and the vip staff participate this year they light the third street we took a hiatus to give everyone a break but continued at oceanside those are the year numbers the numbers on the rap video the number of folks that are friends and following us and liking us you kudos to the
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communication staff they've going done a great job. >> we raise money for a warm coat and our program management unfortunately not me dressed up we did fundraiser activity with that, any questions on the program i'll be happy to answer any questions you may have. >> i just want to point out maybe we glossed over is one of the major concerns we have the central shop and so we're working on and actually some legislation going before the board we can fast track because one of the things we have to do is move central shop to another location so we can take advantage of this site that's
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why the civil rights will go for each month 3 months escalation that's one of the major themes we're focused on work with the board to get a designer contractor award to design central shops we can put that in place they can central shops can relocation. >> site control as well. >> thank you thank you very much. >> and that that concludes my report. >> other public comments on the general manager report? >> yeah. good afternoon, commissioners eric brooks san francisco green party grassroots organization our city so i recently found out something about something hopefully, will at least go into
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the general manager report if not be rescheduled for a full item hearing and that unfortunately, i heard about it last spring that is you might be aware and had an item previously the california independent system operators is getting ready to seek permission to join with pacific world and pacific core still as coal in their management area and basically, their trying to become a much bigger system operators to save costs which may or may not the case one way to put more fossil fuel in the energy mix we're looking a situation they're going to seek permission soon on this where california vicinities system operators that manages the service that they no longer
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have coal and needs to head away from fossil fuel at all from gas and the vicinity system operators is proceedingly better than about the resources mix and resource planning and joining those in this we get this more fossil fuel coal oriented system operators joining with our system operator that didn't it seems to me like it is in the san francisco utilities interest and kaltz interest the interest of fighting global warming so i hope the general manager has the staff look at this and maybe the environmental commissioner president vietor have staff look at this what it means if it looks like it causes serious problems let's get an item on
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the agenda and deal with it to the state we don't want this to be approved that's it thanks. >> could we get an update at the next meeting the implications of this merger on pg&e operations and we'll definitely look at this. >> is there any additional public comment? >> on the general manager report or commission comments we'll take a quick 5 minute break and return a >> okay. we're resuming the san francisco public utilities commission meeting and we're moving to the consent calendar item 10 can you please read the items mr. commission secretary and item 10 consent calendar
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commission. there will be no separate discussion of these items a member of the commission, the public, or staff so requests in which event the matter shall be removed from the consent calendar and considered as a separate item at this or a future hearing. a approve terms and conditions and authorize a 5 years last but not least lease for approximately 4 thousand plus rental square feet of office space on park boulevard at a rental rate of 9 thousand plus per month and b authorize the memorandum of understanding with the wastewater authority with the administration and disbursement of state fraternity grant to $500 plus for the incentive programs and c the collection selection of partnership in the services ord agreement r organization and authorize the professional
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services agreement with the partnership not to exceed 200 and 1 thousand plus and professional services agreement with the services for not to exceed seven hundred and 44 thousand plus each with the duration of it years and the approved increase for the construction costs for in the amount of of 6 thousand blue the two success kickoff calendar days and e the contract in the anonymous of $4 million plus to the lowest qualified responsible and responsive bidder and construction f award contract in the amount of of $3 million plus for the lottery qualified and responsible and responsive bidder and g accept the contract
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number for the amount of $7 million plus approve administration number 2 for a time estimation of 26 calendar days and authorize for the contractor and h modification for the contract number extending the contract duration by 94 consecutive calendar days. >> i'd like to remove item 10 a to discuss it separately any other items that the commission wants to remove from the consent calendar. >> hearing none a motion to approve the cds. >> i'll make the motion. >> second. >> any public comment on the cocalendar? hearing none a motion to adopt the cds >> all in favor, say i.
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>> i. >> opposed? that item passes and item number one number ten a i understand there is a resolution that is being substituted that we have before us. >> good afternoon real estate development we're asking two existing agenda resolution and the first one to correct the miss identification of the rental increases for the c pi and year and the second to the landlord to terminate the lease after 4 years this is the last minute request for the landlord for the new contractors assistant center premises. >> a motion to approve the substitute resolution? >> so moved. >> second. >> any questions or comments? public comment?
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please, mr. da costa. >> commissioners you all understand that great deliberation went into creating the contracting center some of you know about that but most of you don't know about it because you have not yielded made efforts to go and participate in the deliberations that happen at the contracting center i'm here to stress one thing that have are besides helping the contractors besides helping s sfpuc to show off the technology they have we need to pay attention to what really is happening in the community right now a heavy heart i'm come from the board of supervisors
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without making any comments over there to the commission over here so see god billing at what point you all arrived for me to make the comments i'm going to make it is useless to build a digesters now i know the general management and he knows me i know some commissioners like willie and a i know anderson because he's heard me this many years i don't want anything for myself i retired a long time ago we have reached the point in our
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community i'm begging the san francisco public utilities commission instead of catering to invested groups instead of wheeling and dealing and moving money with city build i get all the reports i have vertebrae good information that is reported to me i'm asking you you all somehow we have to address the thinking justice done to the segment of the population in the bayview known always the african-american i can go deep into that. >> that's fire the board of supervisors and once you hear the deliberations you will understand what i'm saying even though you're a public utilities commission ultimately you have to ass act as human beings you have to bring opportunity so we
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go to a better place thank you very much. >> so there's an item on the table 10 a and there's a motion that's been seconded any other future public comment on the item hearing none. >> all in favor, say i. >> i. >> opposed? that motion carries next item, please. >> and item 11 approve the minutes to c s-296 a there e and authorize the total a contract by $4 million with no exceeding $9 million. >> good afternoon commissioners assistant general manager for infrastructure this amendment is to ask to increase the limit from $25 million to $30 million that is basically a hybrid of our traditionally pool contracts for
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doing planning design and design support during construction and we have 5 contracts one of them the one with black is $9.02 of our consultants are at approximately $5 million and the other two are at 2.5 increasing inform $30 million allows us to increase a particular contract that's not reached 9. $5 million that is this contract that used to do the lower interior aqueduct. >> any questions on this item is there a motion? >> i'll move approval. >> second and public comment? >> all in favor, say i. >> i. >> opposed? thank you next item 12. >> approval to agreement number c s-891 to expend the
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term for one year. >> is there a motion to approve this item. >> so moved. >> second. >> any he questions or comments public comment? on this hearing none >> all in favor, say i. >> i. >> opposed? thank you that motion carries. >> 13 police commissioner secretary. >> approval for the c s cd e g h i and authorize the jurisdiction by two years and 6 months and increasing the amount by $50,000 is there a most motion to approve this item and so moved. >> second. >> public comment? >> all in favor, say i. >> i. >> opposed? thank you, ms. how next item. >> commission secretary.
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>> item 14 agreement and authorize the general manager to solicit applications and have thirty agreements the grants will have not to exceed of $40,000 and a duration of two years per agreement. >> 4 hundred thousand i understand there is a different amount we'll be considering can you speak to that. >> jutting juliette i wanted to begin with notice finally 43 finally an arrow i've put a new version in front of you and copies for the public and a substitute resolution that the grant are up to 8 hundred thousands over two years not to exceed 4 hundred thousand per year this is the change in point of view and this program should be familiar it is the project
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that the puc supported over the past 4 years last year, we invest three hundred plus in grant and retained about 6 hundred and 35 young people up to 14 young people over the summer this was the mayor's youth summer program 7 thousand young people it is urging the departments and other sectors to help to be respectful you'll see we're proposing to expand the program beyond the programs to people year-round from the school year and expect to reach 6 thousand additional young people so i'll be happy to answer any questions you may have. >> is there a motion to approve the amended substitute resolution before you. >> so moved. >> i'll second. >> any questions or comments?
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public comment on this item? >> all in favor, say i. >> i. >> opposed? that motion carries next item, please. >> item 15. >> approve the plans for specifications and award the contract in the amount of of $28 million plus to lowest qualify responsible and responsive bidder to the company. >> is there a motion to approve this item? >> i'll move. >> second. >> any public comment on this item? hearing none that motion carries. >> next speaker, please. >> please 16. >> approve the plans and specifications and award the contract in the amount of of $23 million plus to the lowest qualify responsible and responsive company.
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>> thank you. is there a second. >> second. >> item? ? >> all in favor, say i. >> i. >> opposed? that motion carries. >> item 17 please. item 17 affirm the conditions necessary for the general manager to launch the cleanpowersf program and purchase power from the existing practice writing these programs and direct the general manager to take the steps to consensus the cleanpowersf services. >> good afternoon, commissioners barbara hale assistant general manager for power i'm happy to recap where we're at for cleanpowersf and update you on the latest information and seek over support on the resolution before you in november we presented the cleanpowersf business plan and recommend did business design and outlined the costs and
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opportunities and risks we discussed how those risks would be mitigate and projected the performance in december we updated the commission on all of those elements and presented the final business plan that was shared with the commission and members of the public at that time, in on december 8th we identified cost elements in the plan that were still in fluctuation a number of those have now settled so i'd like to do today review what those are and the impact on the program projection also review the key milestones the schedule so today's presentation should provide you with what we understand to be the final projected program performance
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applying the business policies and policies you adopted in september we still have the same cleanpowersf goals and objectives that is balancing affordability and cleaner energy for local renewable jobs and insuring stable rates a stable financial picture the overall program design has always not changed what's changed since i since over presentation on december 8th our fees were adopted the exit fee was increased as promoted in the december 8th presentation there was a slight decrease in the rates and an increase in residential generation rates we received a new supply price refresh we're seeing the supply costs decline a little bit as
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they did before the december meeting and weer showing here revised customer mixed and enrollment plan that reflect the participation of commercial customers in the program as commissioner caen suggested the december 8th meeting to improve the programs overall performance the overall outcome is an increase in margin and stronger reserves as a result of those changes on the 8 we shared this base case we recorded a 6.05 operating reserve what we were able to excuse me. a 6.5 percent operating margin and we were able to fund our operating reserve by 2018 but not able to suv fund our consistency rate reserve to meet the target the
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circled areas on the slide we've settled that and now this new look at the sources and uses again overall what i'm going to show you is improved financials with a margin that is now proenld at 12 percent so with pg&e's current rates and exit fee we see favorable movement in the energy sales revenue an increase of about $6 million we're project by project as a result of those changes in pg&e current rates and pcia for exit fee on the supply cost line due to the refresh another item that is favorable a decrease of a million dollars over a 5 year
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period and seeing as a result of the customer mix change a decrease in some of the operating costs over the 5 year period resulting in about $3 million in savings those improved financials allow us to project funding the reserves both the operating and contingency funds and as well as additional reserves the 3 green circles at the bottom the slide we've yipped for our consideration a sensitivity analysis on the eight here's the new picture there very modest changes and results there very small manageable where what we see overall then in this new base case is the ability to
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achieve our goals affordable cleaner investing logically and providing rate and financial stability while achieving a 12 percent operating margin still a relatively small margin but much more comfortable to launch this new line of business knowing a fully operating reserve and contingency stable shin in the first 3 years so just to recap quickly the drivers that have settled are hone on this slide by the 12 we have been successfully negotiating with our court parties ass same parties you saw before and the negotiations for the contract are now complete counter parties are getting final approval signatures today and tomorrow on the master agreement and final prices and
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sign confirms with our resolution before you i want to emphasize this is the first round of contracts we'll have additional opportunities to do business with those supplies and others companies as we move forward with the program in the future quick recap where we at schedule wise with our change in customer mix the slight change we want to strategically slip our service date from the april 16th date you've seen before to the may one date you see at the bottom of the slide that allows us to begin to serve commercial customers in the cleanpowersf program after they've seen their annual rate change under the wirnlt schedule to the summer schedule every time - every year at this time they'll see a shift
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from a lower to a higher summer level we don't want to confuse them our service is that we've strategize offering to the may 1st date to make it the bills more understandable the changes to our committees you backing up you'll see the schedule also includes program notices being sent anti january 29th as a give us two weeks more time to work with the customers in advance of send out the notices and make the may 1st date then and so with that, i'd like to encourage the licenseers to enroll and ask for the commissioners yes vote to get this program started thank you.
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>> questions or comments i pulled up my notes 2 1/2 years ago i found my notes relevant for today so i thought. >> i told you so; right? >> put in a few minor events. >> today is a historic enemy for the city of san francisco to show it's decade to ross's green house gas emissions and become a leader in embattling change cleanpowersf so lead the country by example to protect our city from the impacting environment and build our own local clean supply we wouldn't have arrived was the leadership the city and the entire commission they bring
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expertise and perspectives that allow us not to exceed that allows four 100 percent and options of renewal power and local job creation i want to acknowledge the hard work of the staff we asked 80 them to address the concerns the local build out to the power mix to the affordability of the promissory note program we have before us accountable raised to meet the ouvendz and move the program forward this is the faster and most effective way to move forward the cca model is implemented across the state and country with a great responsibility and honor i make the motion to confirm the motions to have cleanpowersf. (clapping.) >> so i'm going to make the
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motion. >> so i know i just want to add i want to thank the staff it took a a long time to get to this point and we've been here and i think back when the that i have even though happened i felt the momentum shift the opt out was the goobldz so once we that i have even though and phone call we have a way to go we have a lot i really want to thank the commission for their leadership we have a great meeting with soma and talked about their program and really want to thank
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the two commissioners francesca for coming to the meeting and talked about one of the biggest challenges to launch but once you launch it is day to day interaction like going into business i with great pride happy to accept the responsibility of finalizing the deal and signing the document if you approve the - item. >> so i made a motion is there will something else make the motion. >> i want to say a if i things first of all, it is awesome you have notes but i think the engagement between the advocates and staff really is started out kind of rocky and counterfeited we owe the thanks to the
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advocates for being practical with us i think precedent but i don't think we could have a more appropriate chair than francesca not just today but the next few phases i'm happy to sit with her and be a part of it when i started to do the math who would be the chair and rolled the stuff out i'm supporting her if she wants to make a motion as chair i ask we suspend robert's rules of order and do this. >> no, we don't actually not adopted the robert's rules of order so most commissions have we're exceptional so she actually controls the order of business so she can move to make
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her own motion. >> after we have public comment. >> i'll remember that. >> i can make the motion and get on the table then public comment; correct? if it gets seconded. >> i'll second. >> so commissioner caen would you like to hear from the public comment first. >> public comment. >> okay. good afternoon one more time commissioners eric brooks san francisco green party our city san francisco clean power and of the statewide coalition for expanding and low income community choice aggregation i've said this two or three times this is a great day but this time it looks like it a great day because we're winning
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the world series at least met phonetically and so i want to say the staff present this basic presentation to the advocates a few days ago clearly - the prioritization the customers from the begin so and for once you'll be glad to hear we agree with a delay because of reasons stated we don't want people getting bill shock not a great idea to have people enrolled in a program the day aftertax day that creates a bad mental state so it looks like i did not see
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any advocates oppose that one so just want to strongly encourage to go forward one outlying issue that is currently the business plans to do sustainable citywide build out not 2020 that's two along o long and china is in a down turn we'll focus on creating the clean energy jobs we need to start in the next year or two to get serious about a citywide build out plan now staff to communicate now to figure the kind of workshop and shareholders workshop to figure creativity solutions but besides that one thing that is needed strong work we wholeheartedly
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support our moving forward and this is a spectacular day. >> thank you. >> hello commissioner president vietor i'm jed from 350 sf thinking back to that day in 2013 that was i wouldn't say a horde of people but half a horde a lot of discontent this thing of being inhuman a testament of maybe the length of the process but most importantly most importantly a testament to the level off cooperation we've reached it is no longer necessary to continue to try to convey the level of discomfortable where we are really consider the lack of
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resounding voices of success compared to maybe the situation we've seen with previous presidents of commission in the last few years ago i want to environment the staff for turning a set of bad situations into somehow doubling the margin of the program and doubling the reserves in the first furious and giving a discount to the customers that goes to show we're smart and creative creativity and appreciate the convert planning but give ourselves credit on things tackling now we're about to take this historic step we'll move forward open making sure this is implement fully and to certainly for us as the climate advocacy organization expanding that
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citywide as much as possible as remotely feasible and expanding the build out as feasible looking for alternative funding sources since we've seen no money coming in for the next year's for things like build out and looking at the supervisors and supportive bodies inside of the family that want us to have the jobs and moving forward to 2020 to work together to basically make that happen so that's my cue or maybe it is my mom watching on tv (laughter) thanks very much for getting us all here we look forward to working but. >> jooefd commissioner breed for lafco i think your staff has done an excellent job followed the suit of the my date that is
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something you'll notice all the cca have launched a smart move for the staff to hold back two weeks is something plus a good move to make i'll state that this is actually a great opportunity for the city i know the advocates are talking about there are things in the plan if you push your staff they'll find ways to do the blt build out quicker but a matter of getting the right planning place to launder that plan is in front of you will create jobs in the long run and save he green house gas gas stations and promote a budget in the future that plan will fix the ones needed for operations today, i'm hoping you'll be voting unanimously with the commissioner president vietor it is pushing but pushing for our individual aspects all
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the issues you've raised have been addressed when you give our staff the question and say solve this problem our staff comes back and solves it but only stopped when told not to continue give over staff the permission to go forward and sign the contract and get in program moving forward the city is waiting and ready and anticipating it people are excited about it let's move forward today thank you. >> thank you. >> thanks for all the public comment anyone else any is there any additional public comment? >> >> i have one president. >> mr. brooks thank you for knowing the cubs their favorite to win over the giants a short antidote my wife was addressing the fear of the number of 13
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just to disprove barriers exist in our mind that prevents the success the officer i was impressed i'm glad to be part of effort staff working hard to get this and moving forward is despite the obstacles and we'll breath easy and echo the build out comments i'm eager to see the timeline sooner 2020 as far as job creation just want to praise the staff for they're excellent work thank you. >> thank you and again, yes thank you to the staff for your hard work and it was wonderful how you create a program we're looking forward to continuing our efforts together so we have a motion on the
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table. >> all in favor, say i. >> i. >> opposed? that motion carries unanimously (clapping.) and thank you may i suggest madam president we offer the general manager the right to sign the contract. >> absolutely. >> photo op. >> how be i sit in the middle. >> (laughter). you want to sit in the middle >> i get the middle. >> i know; right?
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>> she signed it. >> signed it. >> fancy pen. >> go ahead and sign. >> all right. >> (clapping). >> thank you. so, now we'll be
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moving into closed session right the closed session items. >> item 20 public employee appointment hiring of the position of assistants general manager for infrastructure of the san francisco public utilities commission 21 unlitigated claim chris for picture frame and 22 unlitigated claim versus the city and county of san francisco, 23 unmitigated claim 24 - property crystal springs in burdening burl game negotiating the sfpuc and crystal springs lp
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course under discussion is terms of payment and price and item 25 existing litigation restore the hetch hetchy versus the city and county of san francisco and items 26 through 32 will not be heard today. >> i move to assert. >> second. >> any public comment on this item? no all in favor of attorney/client prisession. >> great thank you so we're moving out of closed session back into open session items 21 through 23 was settled no further action was taken can i receive a motion whether or
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not to disclose closed session and vote not to >> all in favor, say i. >> i. >> opposed? next item, please. >> ma'am, concert. >> 30 years the general manager to compute and employment extracts for the general manager infrastructure with katherine how for a term of 5 years. >> is there a motion to adapt this resolution. >> motion. >> seconded public >> all in favor, say i. >> i. >> opposed? that motion carries next item, please. >> item 36 other new business. >> so in line with the conversation about the golf course i'm respectfully requesting as long as as no objections through our chair that in given we have a number of budget discussion come up in
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the next few weeks as you recall a gm ellis made a presentation in connection with the glen eagle's one year ago this march i'll ask commissioner president vietor to consider an agenda item for a i don't think year update so i want to kind of get that on the radar. >> great. >> so would that will in march? or february? >> no march or april. >> march or april. >> i want to i want to put that out there. >> please be sure to get that on the calendar any further commission business hastening none meeting adjourne
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as a society we've basically failed big portion of our population if you think about the basics of food, shelter safety a lot of people don't have any of those i'm mr. cookie can't speak for all the things but i know say, i have ideas how we can address the food issue. >> open the door and walk through that don't just stand
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looking out. >> as they grew up in in a how would that had access to good food and our parent cooked this is how you feed yours this is not happening in our country this is a huge pleasure i'm david one of the co-founder so about four year ago we worked with the serviced and got to know the kid one of the things we figured out was that they didn't know how to cook. >> i heard about the cking school through the larkin academy a. >> their noting no way to feed themselves so they're eating a lot of fast food and i usually eat whatever safeway is near my home a lot of hot food i was
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excited that i was eating lunch enough instead of what and eat. >> as i was inviting them over teaching them basic ways to fix good food they were so existed. >> particle learning the skills and the food they were really go it it turned into the is charity foundation i ran into my friend we were talking about this this do you want to run this charity foundations and she said, yes. >> i'm a co-found and executive director for the cooking project our best classes participation for 10 students are monday they're really fun their chief driven classes we have a different guest around the city they're our stand alone cola's
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we had a series or series still city of attorney's office style of classes our final are night life diners. >> santa barbara shall comes in and helps us show us things and this is one the owners they help us to socialize and i've been here about a year. >> we want to be sure to serve as many as we can. >> the san francisco cooking school is an amazing amazing partner. >> it is doing that in that space really elevates the space for the kids special for the chief that make it easy for them to come and it really makes the experience pretty special. >> i'm sutro sue set i'm a chief 2, 3, 4 san francisco. >> that's what those classes
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afford me the opportunity it breakdown the barriers and is this is not scary this is our choice about you many times this is a feel good what it is that you give them is an opportunity you have to make it seem like it's there for them for the taking show them it is their and they can do that. >> hi, i'm antonio the chief in san francisco. >> the majority of kids at that age in order to get them into food they need to see something simple and the evidence will show and easy to produce i want to make sure that people can do it with a bowl and spoon and burner and one pan. >> i like is the receipts that are simple and not feel like
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it's a burden to make foods the cohesives show something eased. >> i go for vera toilet so someone can't do it or its way out of their range we only use 6 ingredients i can afford 6 ingredient what good is showing you them something they can't use but the sovereignties what are you going to do more me you're not successful. >> we made a vegetable stir-fry indicators he'd ginger and onion that is really affordable how to balance it was easy to make the food we present i loved it if i having had access to a kitchen i'd cook